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Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Components of Stock-Based Compensation Expense
The following tables summarize the components of total stock-based compensation expense included in our consolidated income statements in 2015, 2014 and 2013 (in millions):
 
 
Year Ended December 31, 2015
 
 
Stock Options
 
Restricted
Stock
 
Retirement Benefit Stock Match
 
Total Stock-Based
Compensation
Cost of product sales
 
$
13

 
$
24

 
$
3

 
$
40

Cost of services
 
16

 
86

 
14

 
116

Research and development
 
71

 
313

 
11

 
395

Selling, general and administrative
 
70

 
453

 
19

 
542

Stock-based compensation expense before income taxes
 
170

 
876

 
47

 
1,093

Income tax benefit
 
38

 
192

 
18

 
248

Total stock-based compensation, net of tax
 
$
132

 
$
684

 
$
29

 
$
845

 
 
Year Ended December 31, 2014
 
 
Stock Options
 
Restricted
Stock
 
Total Stock-Based
Compensation
Cost of product sales
 
$
16

 
$
38

 
$
54

Cost of services
 
20

 
72

 
92

Research and development
 
79

 
303

 
382

Selling, general and administrative
 
78

 
415

 
493

Stock-based compensation expense before income taxes
 
193

 
828

 
1,021

Income tax benefit
 
45

 
179

 
224

Total stock-based compensation, net of tax
 
$
148

 
$
649

 
$
797

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2013
 
 
Stock Options
 
Restricted
Stock
 
Total Stock-Based
Compensation
Cost of product sales
 
$
19

 
$
29

 
$
48

Cost of services
 
15

 
61

 
76

Research and development
 
75

 
282

 
357

Selling, general and administrative
 
82

 
372

 
454

Stock-based compensation expense before income taxes
 
191

 
744

 
935

Income tax benefit
 
56

 
170

 
226

Total stock-based compensation, net of tax
 
$
135

 
$
574

 
$
709
Net Change in Amounts Capitalized or Accrued
The table below presents the net change in amounts capitalized or accrued in 2015 and 2014 for the following items (in millions):
 
 
Increased (decreased)
during the year ended
December 31, 2015
 
Increased (decreased)
during the year ended
December 31, 2014
Accrued expenses (accrued warranty expenses)
 
$
(13
)
 
$
—

Other assets
 
(24
)
 
(19
)
EMC Employee Stock Purchase - 1989 Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Employee Stock Purchase Plan Activity
The following table summarizes the 1989 Plan activity in the years ended December 31, 2015, 2014 and 2013 (table in millions, except per share amounts):
 
 
For the Year Ended
 
 
December 31, 2015
 
December 31, 2014
 
December 31, 2013
Cash proceeds
 
$
180

 
$
186

 
$
82

Common shares purchased
 
8

 
8

 
4

Weighted-average price per share
 
$
22.44

 
$
22.44

 
$
20.08
EMC  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Stock Option Activity
The following table summarizes our option activity under all equity plans since January 1, 2013 (shares in millions):
 
 
Number of
Shares
 
Weighted Average
Exercise Price
(per share)
Outstanding, January 1, 2013
 
77

 
$
14.39

Options granted relating to business acquisitions
 
1

 
3.29

Forfeited
 
(1
)
 
13.36

Exercised
 
(20
)
 
13.10

Outstanding, December 31, 2013
 
57

 
14.56

Options granted relating to business acquisitions
 
8

 
0.62

Forfeited
 
(1
)
 
13.55

Exercised
 
(24
)
 
13.19

Outstanding, December 31, 2014
 
40

 
12.68

Exercised
 
(13
)
 
11.38

Outstanding, December 31, 2015
 
27

 
13.20

Exercisable, December 31, 2015
 
22

 
15.75

Vested and expected to vest, December 31, 2015
 
26

 
$
13.50
Restricted Stock and Restricted Stock Unit Activity
The following table summarizes our restricted stock and restricted stock unit activity since January 1, 2013 (shares in millions):
 
 
Number of
Shares
 
Weighted Average
Grant Date
Fair Value
Restricted stock and restricted stock units at January 1, 2013
 
47

 
$
24.39

Granted
 
20

 
25.55

Vested
 
(15
)
 
22.61

Forfeited
 
(4
)
 
24.80

Outstanding, December 31, 2013
 
48

 
25.43

Granted
 
23

 
27.65

Vested
 
(14
)
 
24.89

Forfeited
 
(4
)
 
25.63

Outstanding, December 31, 2014
 
53

 
26.50

Granted
 
33

 
25.89

Vested
 
(19
)
 
25.13

Forfeited
 
(6
)
 
26.72

Restricted stock and restricted stock units at December 31, 2015
 
61

 
$
26.70
VMware  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Employee Stock Purchase Plan Activity
The following table summarizes ESPP activity in the years ended December 31, 2015, 2014 and 2013 (table in millions, except per share amounts):
 
 
For the Year Ended
 
 
December 31, 2015
 
December 31, 2014
 
December 31, 2013
Cash proceeds
 
$
98

 
$
80

 
$
76

Class A common shares purchased
 
1

 
1

 
1

Weighted-average price per share
 
$
65.54

 
$
73.21

 
$
65.97
Stock Option Activity
The following table summarizes stock option activity since January 1, 2013 for VMware employees in VMware stock options (shares in millions):
 
 
Number of
Shares
 
Weighted Average
Exercise Price
(per share)
Outstanding, January 1, 2013
 
10

 
$
34.36

Granted
 
1

 
71.53

Exercised
 
(5
)
 
28.12

Outstanding, December 31, 2013
 
6

 
44.12

Granted
 
2

 
50.91

Exercised
 
(2
)
 
35.58

Outstanding, December 31, 2014
 
6

 
50.54

Exercised
 
(3
)
 
29.44

Outstanding, December 31, 2015
 
3

 
64.56

Exercisable, December 31, 2015
 
2

 
59.31

Vested and expected to vest
 
3

 
$
63.89
Restricted Stock and Restricted Stock Unit Activity
The following table summarizes restricted stock activity since January 1, 2013 (shares in millions):
 
 
Number of
Units
 
Weighted Average
Grant Date
Fair Value
(per unit)
Restricted stock at January 1, 2013
 
12

 
$
91.93

Granted
 
7

 
76.20

Vested
 
(4
)
 
83.21

Forfeited
 
(2
)
 
90.55

Outstanding, December 31, 2013
 
13

 
85.85

Granted
 
6

 
92.82

Vested
 
(5
)
 
86.27

Forfeited
 
(1
)
 
88.03

Outstanding, December 31, 2014
 
13

 
88.88

Granted
 
13

 
72.42

Vested
 
(5
)
 
90.72

Forfeited
 
(2
)
 
87.39

Outstanding, December 31, 2015
 
19

 
$
77.29
Weighted Average Assumptions Used to Estimate Fair Value of Awards
The fair value of each option to acquire VMware Class A common stock granted during the years ended December 31, 2015, 2014 and 2013 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:
 
 
For the Year Ended
December 31,
VMware Stock Options
 
2015
 
2014
 
2013
Dividend yield
 
None

 
None

 
None

Expected volatility
 
32.0
%
 
36.2
%
 
38.5
%
Risk-free interest rate
 
1.1
%
 
0.9
%
 
0.9
%
Expected term (in years)
 
3.3

 
3.2

 
3.6

Weighted-average fair value at grant date
 
$
27.16

 
$
48.47

 
$
29.47

 
 
For the Year Ended
December 31,
VMware Employee Stock Purchase Plan
 
2015
 
2014
 
2013
Dividend yield
 
None

 
None

 
None

Expected volatility
 
30.1
%
 
32.3
%
 
32.9
%
Risk-free interest rate
 
0.1
%
 
0.1
%
 
0.1
%
Expected term (in years)
 
0.5

 
0.5

 
0.5

Weighted-average fair value at grant date
 
$
20.59

 
$
20.71

 
$
20.45